Following the Government’s announcement of new Common User Charges, the Fresh Produce Consortium (FPC) has called it a “thinly veiled tax on the industry”, warning that it will result in millions of additional costs for the sector.
In a statement on its website, FPC said industry experts had predicted the change “will add £200 million in costs across the fresh produce supply chain”, which it called a “crippling blow to a sector already grappling with unprecedented challenges”.
Nigel Jenney, chief executive of the FPC, said: “This is simply not a manageable cost for our members. These exorbitant charges imposed by our own Government represent a direct tax on businesses. It’s a move that will undoubtedly shatter supply chain confidence and is already encouraging EU exporters to reconsider their commitment to supply the UK market.”
FPC said that the Government had “attempted to downplay the impact”, asserting that consumers will see a “negligible increase in prices”. It maintained that despite this, importers and retailers had warned of “cascading delays, disruption and spiralling costs” that will “inevitably be passed on to hard pressed shoppers”.
“The CUC system is particularly devastating for SMEs,” said Jenney, “While fees are now capped, they remain substantial – £145 for every consignment arriving in the UK via the Port of Dover or Eurotunnel. This might not seen like much, but with only a small number of consignments actually inspected, the cost per inspection balloons to a ludicrous £5k.”
Jenney clarified that this excluded several additional fees levied by the UK Government, stating that in addition, this compares to a commercial control point fee of “usually less than £100 per consignment chargeable only when a physical inspection is required”.
Jenney continued: “We have for years promoted alternative industry managed solutions which offer far more efficient service for the benefit of both industry and consumers alike. However, the adoption and development of assured operator status allowing responsible companies to manage their own inspections has still to commence.
“Ultimately, it’s essential the UK remains a destination of choice for international exporters to compliment our fantastic homegrown fresh produce and to offer the choice and availability we all demand. The Government’s poorly considered border solution puts this in severe jeopardy or, at best, drives avoidable food inflation.
“These insane charges are an attack on those working tirelessly to feed and flower our great nation. The Government seems hell-bent on punishing businesses that are the backbone of our economy and our health.”
